1.1                          A bill for an act 
  1.2             relating to education finance; dedicating a portion of 
  1.3             the statewide property tax for the payment of adult 
  1.4             basic education aid; appropriating money; amending 
  1.5             Minnesota Statutes 2002, sections 124D.531, 
  1.6             subdivision 1; 275.025, subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 124D.531, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [STATE TOTAL ADULT BASIC EDUCATION AID.] 
  1.11  (a) The state total adult basic education aid for fiscal year 
  1.12  2001 equals $30,157,000.  The state total adult basic education 
  1.13  aid for later years equals: 
  1.14     (1) the state total adult basic education aid for the 
  1.15  preceding fiscal year; times 
  1.16     (2) the lesser of: 
  1.17     (i) 1.08, or 
  1.18     (ii) the greater of 1.00 or the ratio of the state total 
  1.19  contact hours in the first prior program year to the state total 
  1.20  contact hours in the second prior program year.  Beginning in 
  1.21  fiscal year 2002, two percent of the state total adult basic 
  1.22  education aid must be set aside for adult basic education 
  1.23  supplemental service grants under section 124D.522.  
  1.24     (b) The state total adult basic education aid, excluding 
  1.25  basic population aid, equals the difference between the amount 
  1.26  computed in paragraph (a), and the state total basic population 
  2.1   aid under subdivision 2. 
  2.2      (c) There is annually appropriated from the education 
  2.3   reserve account in the state general fund to the department the 
  2.4   amount necessary for adult basic education aid.  This amount 
  2.5   must be reduced by the amount of money specifically appropriated 
  2.6   for the same purpose in any year from any state fund. 
  2.7      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.8   fiscal year 2005.  
  2.9      Sec. 2.  Minnesota Statutes 2002, section 275.025, 
  2.10  subdivision 1, is amended to read: 
  2.11     Subdivision 1.  [LEVY AMOUNT.] (a) The state general levy 
  2.12  is levied against commercial-industrial property and seasonal 
  2.13  recreational property, as defined in this section.  The state 
  2.14  general levy is $592,000,000 for taxes payable in 2002.  For 
  2.15  taxes payable in subsequent years, the levy is increased each 
  2.16  year by multiplying the amount for the prior year by the sum of 
  2.17  one plus the rate of increase, if any, in the implicit price 
  2.18  deflator for government consumption expenditures and gross 
  2.19  investment for state and local governments prepared by the 
  2.20  Bureau of Economic Analysts of the United States Department of 
  2.21  Commerce for the 12-month period ending March 31 of the year 
  2.22  prior to the year the taxes are payable.  The tax under this 
  2.23  section is not treated as a local tax rate under section 469.177 
  2.24  and is not the levy of a governmental unit under chapters 276A 
  2.25  and 473F.  
  2.26     (b) Beginning in fiscal year 2004, and in each year 
  2.27  thereafter, the commissioner of finance shall deposit in an 
  2.28  education reserve account, which account is hereby established, 
  2.29  the sum of:  (1) the increased amount of the state general levy 
  2.30  received for deposit in the general fund for that year over the 
  2.31  amount of the state general levy received for deposit in the 
  2.32  general fund in fiscal year 2003; and (2) any other amounts of 
  2.33  the state general levy necessary to provide funding for adult 
  2.34  basic education aid under section 124D.531.  The Any amounts 
  2.35  remaining in the education reserve account do not lapse or 
  2.36  cancel each year, but remain until appropriated by law for 
  3.1   education aid or higher education funding. 
  3.2      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  3.3   fiscal year 2005.